Usage Patterns and the Economics of the Public Cloud

  title={Usage Patterns and the Economics of the Public Cloud},
  author={Cinar Kilcioglu and Justin M. Rao and Aadharsh Kannan and R. Preston McAfee},
We examine the economics of demand and supply in cloud computing. The public cloud offers three main benefits to firms: 1) utilization can be scaled up or down easily; 2) capital expenditure (on-premises servers) can be converted to operating expenses, with the capital incurred by a specialist; 3) software can be “pay-as-you-go.” These benefits increase with the firm’s ability to dynamically scale resource utilization and thus point to the need for dynamic prices to shape demand to the (short… CONTINUE READING
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